Consumer financing is done by businesses where they offer loans to customers with relations to a finance company. It allows customers to pay for a good or service that cannot be paid for in cash or credit card. Consumer finance helps businesses and consumers. This is also known as consumer credit. Consumer loan is any type of loan given to a consumer by a lender. There are two types of loans, unsecured and secured. Unsecured consumer loans are loans that do not support collateral. Unsecured loans usually offer the borrower limited financing, a short repayment period and a high interest rate. As the loan is not supported by assets, the risk to the lender increases. Secured consumer loans are loans that support collateral (assets used to pay off debts due to borrower defaults). Secured loans usually offer the borrower a higher amount of financing, a longer repayment period and a lower fee interest rate. With the support of loan assets, the risk faced by the lender is reduced. What Are Th...